On the weekly dollar chart, notice the following:
-- The dollar is clearly in a rally
-- The 10 and 20 week SMA are both advancing
-- The 50 week SMA is turning positive
-- Prices are above all the SMAs
-- Prices have broken through more resistance levels established last year
On the daily chart, notice the following:
-- All the SMAs are moving higher
-- The 10 day SMA is between the 20 and 50 day SMA. Aside from that, the SMAs are in a very bullish alignment
-- Prices are above all the SMAs
-- Prices are about to cross over a very important technical level.
Bottom line: these are bullish charts. Both indicate further advances are coming down the pike.
3 comments:
Curious as to why the dollar is rallying. The pound is up against the Euro as well. Is this a long term trend or a dead cat bounce?
I would be interested in your take of the article posted on Jesse's Cafe Americain (blog) concerning the shortage of $US in Europe being a possible cause of the high value of the American dollar.
Here it is: http://jessescrossroadscafe.blogspot.com/2008/10/what-panicked-ben-and-hank-time-to.html
I'm curious how the dollar can be rallying when we're dumping 700 billion more of them out there, and there's rumors starting that the fed might drop rates again.
Both are insane in my opinion, just curious how the dollar rallies in that climate.
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